Domtar Corporation’s board of directors announced yesterday it has approved a proposal for a reverse stock split, a…
Domtar Corporation’s board of directors announced yesterday it has approved a proposal for a reverse stock split, a move that would reduce the number of shares and proportionally increases the share price.
The proposal affects Domtar’s outstanding common stock and a corresponding reverse split of the outstanding exchangeable shares issued by the company’s indirect subsidiary, Domtar (Canada) Paper Inc.
If Domtar’s stockholders approve the proposal, the board may apply a reverse stock split by a ratio of one for 12 shares, one for 15 shares, or one for 18 shares.
Shareholders will vote on the proposal during Domtar’s annual general meeting on May 29. The reverse stock split would also be subject to certain customary regulatory approvals.
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